🏡 Introduction: Why Renting in Japan is Unique

Renting an apartment in Japan is an exciting step, whether you’re relocating for work, study, or a fresh start. However, the rental process here is very different from other countries, with unique costs, strict rules, and cultural customs that can be confusing for newcomers. From paying key money to understanding guarantor requirements, first-time renters are often surprised by the amount of paperwork and initial fees involved.

While Japan’s rental system can seem overwhelming at first, understanding the process in advance will help you find an apartment more smoothly. Whether you're looking for a small Tokyo studio, a shared house, or a long-term family home, this guide will walk you through everything you need to know about renting in Japan, from upfront costs and rent payment methods to alternative housing options and tips for a stress-free experience.

🏠 Understanding the Initial Costs of Renting in Japan

Unlike in many other countries where renters only pay a security deposit and first month’s rent, Japan has several additional fees that tenants must pay before moving in. The exact costs depend on the location, landlord, and type of property, but the most common upfront expenses include:

💰 Key Money (Reikin) – A Non-Refundable "Gift" to the Landlord

One of the most surprising and unique aspects of renting in Japan is key money (礼金, reikin), a non-refundable payment made as a “thank you” to the landlord. This fee, which typically ranges from one to two months’ rent, was originally a cultural tradition to express gratitude to property owners for leasing their space.

However, in high-demand areas like Tokyo, Osaka, and Yokohama, some landlords still require higher key money fees, especially for apartments in prime locations.

While the practice of key money is slowly fading, many rental properties still require it, particularly those in central business districts and popular residential areas. However, some landlords have eliminated key money to attract more tenants, leading to an increase in listings that feature “reikin-zero” (礼金ゼロ) properties.

For budget-conscious renters, avoiding key money can significantly reduce move-in expenses. To find key money-free apartments, search for listings that explicitly mention “礼金なし” (no key money) or “zero-reikin” properties. Some real estate agencies also specialize in reikin-free apartments, making it easier for international residents to find affordable housing options in Japan.

💵 Security Deposit (Shikikin) – Your Refundable Guarantee

A security deposit (敷金, shikikin) is one of the most important upfront costs when renting an apartment in Japan. Unlike key money, which is non-refundable, security deposits are meant to protect landlords against unpaid rent, damages, or excessive wear and tear.

Typically, the security deposit equals one to two months’ rent, though some landlords may charge more depending on the property and location.

The return of the security deposit largely depends on the condition of the apartment when the tenant moves out. While tenants may expect a full refund, landlords often deduct cleaning fees, repair costs, or restoration expenses before returning the remaining amount. Some rental contracts clearly state upfront cleaning fees, which can range from ¥30,000 to ¥50,000, even if the apartment is left in good condition.

To maximize the refund of your deposit, it’s important to document the apartment’s condition upon move-in by taking photos and videos. Additionally, ensuring that walls, flooring, and appliances are maintained throughout the tenancy can help avoid unnecessary deductions.

Reading the fine print of the lease agreement is essential, as some landlords include clauses that automatically deduct cleaning or repair fees regardless of the apartment’s condition.

If you're unsure about the contract terms, consulting a real estate expert or a rental agency that assists foreigners can provide clarity on deposit refund policies.

📜 Agency Fees (Chūkai Tesūryō) – The Realtor’s Cut

Most people in Japan find apartments through real estate agencies, which act as intermediaries between landlords and tenants. However, these agencies charge a commission fee for their services, known as chūkai tesūryō (仲介手数料). The standard agency fee is equivalent to one month’s rent, though some agencies offer discounted or zero commission options.

While real estate agents provide valuable assistance in navigating the rental process, comparing different agencies can help reduce unnecessary costs. Some agencies specialize in foreigner-friendly apartments and offer discounted commission rates or promotional deals, so it’s worth researching agencies that cater specifically to international tenants.

In recent years, online apartment rental platforms have gained popularity, allowing tenants to bypass traditional real estate agencies and avoid commission fees. Websites that connect renters directly with landlords can be a cost-effective alternative, especially for those looking to avoid hefty agency charges.

👥 Guarantor Fees (Hoshōnin or Hoshōgaisha) – The Safety Net

In Japan, landlords often require tenants to have a guarantor (保証人, hoshōnin)—a Japanese citizen who agrees to cover the rent if the tenant is unable to pay. However, since most international renters do not have a local guarantor, they must use a guarantor company (保証会社, hoshōgaisha) instead.

A guarantor company acts as a third-party financial security provider, ensuring that landlords are protected against unpaid rent. This service comes at a cost, with fees typically ranging from 50% to 100% of one month’s rent, plus an annual renewal fee of around ¥10,000–¥20,000.

While a guarantor company adds to the initial rental expenses, most landlords require one for lease approval. Some large real estate firms partner with specific guarantor companies, simplifying the application process for tenants. If you are renting through a company-sponsored housing program, your employer may act as your guarantor, reducing or eliminating this cost.

For tenants looking to minimize expenses, it’s advisable to check whether the landlord accepts alternative guarantor options, such as corporate sponsorships or university-backed guarantees for international students. Some rental agencies also work with low-cost guarantor services, offering a more affordable alternative for securing a lease.

📅 Initial Rent Payment – Paying Before You Move In

Unlike in some countries where rent is paid at the end of the month, Japan requires prepaid rent, meaning tenants must pay their first month’s rent upfront before moving in. This is an important distinction for foreigners accustomed to paying rent at the beginning or middle of the month, as failing to budget for this can lead to unexpected financial strain.

In most cases, the initial rent payment is included in the total move-in costs, along with key money, the security deposit, and agency fees. This means that when you sign your lease, you could be required to pay an amount equivalent to four to six times the monthly rent.

To avoid late fees and maintain a good rental record, it’s crucial to understand the payment schedule outlined in the rental contract. Rent is usually due at the end of the previous month, so for example, January rent must be paid by the end of December.

To make rent payments more convenient, many landlords offer various payment methods, including bank transfers, convenience store payments, and in rare cases, credit card payments. Some real estate agencies provide auto-deduction services, allowing tenants to set up automatic monthly rent payments to prevent accidental late payments.

If you’re moving to Japan as a student or expatriate, some employers or universities offer housing support, which may cover part of the initial rent or assist with securing low-cost accommodations. Checking whether your institution or workplace provides housing assistance programs can help alleviate the financial burden of move-in costs.

🏦 How to Pay Rent in Japan

Once you've moved into your new apartment, you'll need to pay rent on time each month. Japan offers several convenient rent payment methods, but it's important to check with your landlord or management company to see which options they accept.

🏧 Bank Transfer (Furikomi) – The Most Common Method

Most tenants pay rent via bank transfer (振込, furikomi) through ATMs, online banking, or mobile apps. Some key points to remember:

Rent is usually due at the end of the previous month, meaning January rent is paid at the end of December.

Bank transfers often have a small processing fee (¥100–¥500 per transaction).

Setting up automatic bank transfers can help avoid missed payments and late fees. Want to learn more about this payment method? Read our article about the unique culture and method of ATM payment in Japan here!

🏪 Convenience Store Payments (Konbini Furikomi) – Pay While You Shop

Some landlords allow tenants to pay rent at convenience stores like 7-Eleven, Lawson, or FamilyMart. The landlord provides a monthly payment slip, which the tenant takes to the cashier to make a payment.

This method is especially useful for renters who do not yet have a Japanese bank account.

💳 Credit Card or Debit Card – A Rare but Useful Option

While not common, some modern property management companies allow credit card payments for rent. This option can help with cash flow management and earning reward points, so it’s worth asking if your landlord offers this service.

💰 Cash Payments – The Old-Fashioned Way

For short-term rentals and guesthouses, landlords may accept cash payments, but always request a receipt to keep a record of your transactions.

⚠️ What Happens If You Can’t Pay Rent?

Missing rent payments in Japan can have serious consequences. Some landlords charge late fees (2–5% of rent), and if a guarantor company covers your missed payment, they may add additional penalties.

If rent is unpaid for two to three months, the landlord can begin eviction proceedings. Japan has strict laws protecting tenants, but long-term non-payment can lead to legal action.

For renters facing financial hardship, Japan offers housing security benefits (住宅確保給付金). Eligibility depends on income level and local government policies, so check with your ward office if you need assistance.

🌏 Alternative Housing Options in Japan

For those who want to avoid expensive upfront costs and long-term lease commitments, there are several alternative housing options available.

Share Houses offer lower initial costs, flexible leases, and furnished rooms. They are popular among students and young professionals looking for an affordable and social living arrangement.

Furnished Short-Term Apartments are ideal for newcomers adjusting to life in Japan. Many come with utilities included and require less paperwork than traditional rentals.

Company-Sponsored Housing is an excellent option for those moving to Japan for work. Some employers arrange housing for employees, covering key money and other upfront costs.

🎓 Planning to Learn Japanese While in Japan?

If you're moving to Japan and want to improve your Japanese language skills, LALALA Nihon can help you find the right language school to match your learning goals and career plans. Studying Japanese can also increase your chances of securing better rental opportunities and making daily life easier. We are also to help you find the perfect housing options anywhere in Japan! Just reach out here to have a chat.